The challenge
Decarbonising hard-to-abate industries
With a volatile global energy system under pressure, alternatives to energy production, supply and security need to be considered.
Low Carbon Liquid Fuels (LCLF) offer a low carbon solution for hard-to-abate industries, such as long-distance transport, mining and construction.
Industry is committed to emissions reduction, but without the option of electrification or alternative fuels, such as green hydrogen, in the near term, major fuel users such as airlines and defence forces will need to rely on the use of LCLFs to reduce emissions.
Renewable diesel (RD) and sustainable aviation fuel (SAF) are two examples of LCLF that can be used as drop-in replacements for fossil fuels.
These fuels are derived from a range of feedstocks such as biomass, waste products, natural oils and fats, other carbon sources and hydrogen.
Our response
Analysing low carbon liquid fuel options
Australia now has an opportunity to develop a LCLF industry which delivers regional economic growth while meeting decarbonisation and fuel security goals.
Australia can play a key role, as both a source of feedstocks and as a LCLF producer, with Australia already producing significant quantities of feedstocks exported for LCLF production.
There is significant potential to refine new and existing biomass sources through a variety of conversion pathways. Australia is well-positioned to expand biomass into a diversified portfolio of feedstock sources.
Australia’s growing hydrogen economy could provide a clean supply of hydrogen which is needed by several pathways as either a feedstock on its own or in future fuel production processes.
But, key questions remain around affordability and sustainability, as well as competition for feedstocks and economically efficient scales of production. With numerous feedstocks and technologies to choose from, what are Australia's most suitable LCLF options?
The results
Report: Opportunities and Priorities for a Low Carbon Liquid Fuel Industry in Australia
Developed in partnership with federal government, this report analyses Australia’s capability and capacity to develop a LCLF industry. Including barriers, potential opportunities and co-benefits that different feedstocks can provide to our ecosystems, farmers and regional communities.
Australia has a renewed opportunity to combine our abundant biomass resources and renewable energy potential for a domestic LCLF industry and potentially a globally competitive, synthetic fuel export industry.
Three case studies illustrate the range of opportunities, and how projects must be assessed and developed on a case-by-case basis. The Report also explores a range of challenges from feedstock uncertainty, competing demands and impacts of changing climate. While highlighting the importance of carefully managing feedstock production, to avoid competition for land and water.
- Opportunities and Priorities for a Low Carbon Liquid Fuel Industry in Australia PDF (6 MB)
- Opportunities and Priorities for a Low Carbon Liquid Fuel Industry in Australia TXT (258 KB)
Sustainable aviation fuel roadmap (2023)
Aviation is one of the most challenging industries to decarbonise, contributing 2.5 per cent of the world's total carbon.
In consultation with over 40 organisations from across the value chain, nationally and internationally, including industry, government and academia, CSIRO and Boeing identify the opportunities and risks, the Sustainable Aviation Fuel Roadmap builds consensus on developing an Australian sustainable aviation fuel (SAF) industry, identifying opportunities to produce and scale production using Australian feedstocks.
The Sustainable Aviation Fuel Roadmap highlights that Australia in prime position to produce and scale SAF feedstocks, and contribute to a SAF industry in the Asia Pacific region.
As the country already produces significant quantities of feedstocks that are exported for biofuel production, it is well-positioned to expand into a diversified portfolio of sustainable feedstock sources.
This Roadmap is part of the critical work CSIRO is undertaking to support Australia’s hardest to abate sectors to halve their emissions by 2035, and forms part of our Towards Net Zero Mission.